CONSULTANT REPORT ON AGENCY PROCUREMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R001600240002-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 46
• Document Creation Date: December 16, 2016
• Document Release Date: July 26, 2004
• Sequence Number: 2
• Content Type: MF

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MEMORANDUM FOR: Executive Director-Comptroller
SUBJECT . Consultant Report on Agency Procuremen
1. Forwarded herewith at Tab A are the comments of the DDS, DDS&T,
DDI, DI)? and D/PPB0 on the Livingston Report. Por your convenience we
have summarized at Tab B the main recommendations of the consultants in
numerical sequence, along with summaries of the comments by the various
components. The recommendations are keyed to the report, for more
detailed reference.
2. We feel that the DIOS response is a particularly strong one,
presenting a positive course of action that involves the least disruption
of existing Agency organization and procedure while addressing itself to
the main criticisms made by the consultants about the present system. We
would summarize the significant remaining disagreempnts as follows:
a. In agreeing that all R&D procurement should not be central-
ized in the DDS, we feel that there is still need for some single
standard for Agency management of all procurement conducted by its
personnel. We have therefore proposed that the Director. of Logistics
have an overall policy relationship to OSA/OSP R&D procurement
standards, in lieu of that recommended by the consultants for a
Special Assistant to the DDS.
b. Both the DDS and the DDS&T believe that programs now under
way for development of Management Information Systems in logistical
and R&D procurement can be handled adequately with existing ex-
pertise in the Agency. We have doubts on this, based on the report
and on discussions with the consultants during the survey. Comments
by D/PPB seem to confirm our impressions. We propose further dis-
cussions with the consultants to firm up our understanding of their
evaluation on this point., as a basis for deciding if outside
assistance should be sought. There are other minor issues that are
covered in the body of our attached comments, but not significant
enough for emphasis here.
3. Your attention is especially invited to paragraph I. of the DDS
memorandum, which outlines his plan of action, and to his request for
your approval of it.
Attachments-2
Tab A: Comments of DDS, DDS&T, DDI, DDP
& D/PPB on the Livingston Reportsos4;6
Tab B: Summary of Comments
S E R T
J. S. Earman
Inspector General
NRO review(s) completed.
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Recommendation 1
A Special Assistant to DDS should be assigned responsibility for
management surveillance of all Agency procurement. (Chapter VI,
section 1.1).
pals Comment
This recommendation would have merit only if all recommendations are
accepted at face value. It envisions a supervised Procurement Program
encompassing both the "Agency system and the NRO system," The interdepart-
mental nature of the NRO system, its special delegations, funding, uncertain
future, security and DOD relations necessitates that this be separate. It
is unnecessary to change the responsibility for the other Agency procurement
from the Director of Logistics to the recommended Special Assistant.
DDS&T Comment
The recommendation is based on the erroneous premise that there is no
single person responsible for procurement policies: and procedures. The
Director of Logistics has this responsibility. The new job would duplicate
this function, as well as taking over decisions now made by the Directors
of Logistics and Finance, or the components responsible for managing the
programs. This would insulate the DOS from those components and, as a new
echelon, would not facilitate matters. The objective can be met more
efficiently by charging the Director of Logistics with responsibility for
improvement rather than creating duplication. It would be a mistake to
establish a Special Assistant for Procurement and at the same time make
the DDS&T responsible for R&D procurement.
Dra Comment
Endorses the idea of assigning responsibility to one individual for
the development of uniform Agency procurement policies and procedures and
general monitoring of Agency procurement.
DI P Comment
he recommendation should be adopted. However, the proposed position
is envisioned as largely one of management surveillance. It should be one
of management authority and responsibility across the broad spectrum of
procurement activity.
It could become a source of central policy and procedural guidance in
R&D and related production procurement, each directorate having a contract-
ing group in closest touch with the directorate's needs, and close to
technical officers.
p4PPB Couent
/be principle of central authority for Agency procurement is sound.
It should be made clear that the DDS has this authority, reporting to the
Executive Director. If he chooses to have a special assistant he can so
provide.
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DIRECTORATE PROPOSALS
The DDS, as does DiPPB, believes that the "Agency system and BRO
system" should be kept separate and not be subordinated to one procure-
ment authority, and therefore that the Director of Logistics mould
continue to be responsible for management policy, practice and procedure
over the Agency system.
The DDSST appears to have not fully understood the recommendation,
but tends to agree with the DDS.
The DDI and DDP agree with the recommendation, but the DW would
go even further and give real authority to the proposed Special Assist-
ant instead of limiting it to "management surveillance."
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IQ COMMENT
The consultants felt a need for one central authority over all Agency
procurement, to ensure compliance with uniform standards. This has ad-
vantages both in terms of internal controls and of having one way of ddhg
business with contractors, many of whom deal with more than one part of
the Agency. The consultants felt, from a considerable experience with
both government and private contracting work, that contractors are not
reluctant to take advantage of inconsistent policies and practices that
may exist in a single government agency.
The consultants felt this required a single policy point, at a
sufficiently high level, with both policy-setting responsibilities and
with a management surveillance task as well.
The DOS is correct in stating that if there is not to be a "centrali-
tation" of RAD procurement in DDS&T? away from 11060 the recommendation
loses mach of its force. However, the "NRO system" would still be under
the Da, and the basic argument of the consultants for the need for a
common policy still is an impressive one. We see no reason why the Direc-
tor of Logistics cannot be given responsibility for formulating R&D
procurement rules that have an applicability to OA/OP (the "MR0 systeme
as well as to other MD.
As this relates to the consultant's recommendation on centralization
of R&D procurement under the DDS&T, our final recommendation will be found
there, in the next section of this paper.
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Recommendation 2
All Agency R&D Procurement, with the possible exception of TSD
contractors, should be centralized under the direction of DDS&T.
(Chapter VI, section 1.5).
DDS Comment
The reasoning is inconsistent by recommending centralization under
DDS&Ti then decentralizing by exceptions (e.g., TSD). This dramatic re-
organizational change of responsibilities, manpower, and funds, to achieve
the "team" concept of procurement defeats its own purpose by subsequent
exceptions. While the present system is effective, it does have coordi-
nating problems primarily due to geographic separation of offices. There
are easier answers.
DEW Comment
The proposal, by excepting TSD and possibly EPIC, really decentralizes
rather than centralizes, R&D procurement. There are only two procurement
systems in the Agency (although the report says three, at one place, and
five in another), these being the Agency system and the NRO system. The
transfer of contracting officers, to accomplish the "team concept," must
be accompanied by transfer of personnel from Industrial Contract Auditing
Division and the Office of Finance. While the team approach would be
more effective than the present system, it should remain under the cogni-
zance of the DDS.
DDI Comment
Eildorses the recommendation, with the understanding that centraliza-
tion of R&D procurement does not include centralization of management and
technical control of all R&D programs. There is no objection to consoli-
dation of administrative functions related to contract procurement negotia-
tion and fiscal monitoring.
DDP,Comment
Although the Clandestine Services can live with the proposed reorgani-
zation, it is not certain that it is the most effective way of managing
procurement. As the report proposes assignment of a contracting officer
to TSD it will not be much change over existing procedures there, although
under the new arrangement greater independence of action and final contract
negotiating authority might improve the present practice.
iVPPB Comment
EXcept for NRC) procurement, which should be handled separately, the
DDS should have ultimate authority for Agency procurement. The DDS should
develop a plan for procurement specifications, and for making final determi-
nations as to acceptability of material and services required by the Agency.
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DIRECTORATE PRO ALS
The DDS feels that to achieve the valid objectives of the recommen-
dation, and avoid the major organizational dislocations it would produce,
a series of actions should be taken in preference to transferring R&D
procurement to the DDS&T. These steps are outlined in paragraph 4, sub-
paragraphs b, e, f, g? and j of the DDS memorandum on the report,
summarized as follows:
(1) Sufficient contract and industrial contract audit officers
will be assigned to the operating directorates to handle the R&D
contract work load and permit the "teed' concept to function.
(2) DDS&T, DDP, and DDI would be delegated, on request, au-
thority to conduct all R&D contracting for contracts up to $200,000.
(3) The Office of Logistics will render advice, assistance, and
guidance to all components in performance of their contract responsi-
bilities.
Both the DDS&T and DDP have reservations about the recommendation,
DDS&T tending to agree with DDS. The DDI appears to accept the recom-
mendation.
DOM in expressing his disagreement with the proposal, adds that
the DDS should develop mechanisms for formulating procurement specifica-
tions, and for making determinations on acceptability of materiel and
services.
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ia C01094EIV
The DDS reply advances a new approach that is designed to meet the
objective of the consultants, in providing a form of central controls
co-location of technical and support personnel, and achievement of the
"team" approach in R&D contracting for R&D handled in the "Agency"
system.
We feel that the considered and balanced proposal of the DDS is
sound, and offers the least dislocation of any approach presently avail-
able. We endorse the approach in lieu of that proposed by the consult.
ants. ROwever, we also feel that there remains the basic issue of one
policy and set of procedures for Agency officers in dealing with the
outside world. This would derive from the development of a single set
of standards applicable to all Agency R&D contract activity (both "Agency"
system and "MRO system"). It is not believed that these would prove
incompatible.
It is recommended that the proposal of the DDS for strengthening
the Agency's RAD activity be accepted, and that it be extended to the
development of one set of standards and procedures for all the Agency
under the authority of the Director of Logistics.
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Recommendation 3
A contract Review Board should be established with jurisdiction
over contracts over $250,000, chaired by the new Special Assist-
ant. (Chapter VI, section 1.2).
DVS Comment
The principle has merit, and such a Board should be established
under the chairmanship of the Director of Logistics, jurisdiction to be
over $200,000.
DDSAM Comment
There is already a significant review of all programmed activities
in the Agency. (It is doubted the consultants fully appreciated this.)
Individual transactions (after planning and programming) are subject to
review and approval under established procedures. The Deputy Directors
approve, the Director of Logistics is responsible for contracting, and
the Director of Finance audits contracts and disburses. If Agency manage
ment feels this is insufficient it should clearly charge the respective
offices with the specific improvements needed.
DDI Comment
such a Board appears unnecessary. Approving officers can call for
such information as they need without the formality of a board.
Come
e that a Contract Review Board should review all procurement
contracts of $250,000 and above at the DDS level, to be chaired by the
Special Assistant to the DVS for procurement. The technical office
should be represented for any of its contracts before the Board.
DATB Comment
supports the institutionalization of a Contract Review Board, but
opposes raising the "threshhold for procurement approval" from $150,000
to $250,000.
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DIRECTORATE PROPOSALS
DDS end DDP agree. DDI and DDSOIT do not, on basis that there is
at present adequate review activity in the Agency's planning and approval
system.
DiPPB agrees to the Contract Review Board, but opposes raising the
amount requiring approval by high authority.
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IG COMMENT
We feel that the value of this proposal is, not that it adds to
the review and approval system, as such, but that it screens and
staffs, for higher approval authority, major contract actions usually
forwarded without such intermediate processing. It is a protective
management device, to ensure that a full substantive check haa been
made, and that procedural requirements have been adequately met.
In its present form it supplements the proposed DDS delegation of
authority to the deputy directors in amounts up to *200,000, over
Which amount higher approval would be required.
It is recommended that the recommendation be approved, subject
to the DDS proposal of a jurisdictional amount of $200,000.
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Reemmendation 4
Consideration should be given for placing the responsibility for
all auditing policies, procedures and assignments under the
direction of the Chief, Audit Staff/Office of the inspector General,
(Chapter VI, section 1.6).
1,12221W1-11L
-----Thii-iecommendation has no merit and does violence to the basic
principles of the Agency's audit system. The division between the Office
of Finance and the Office of the Inspector General should be kept.
DDS' Cont
the reconmendation was based on lack of underatan&Lng of the role
of industrial contract auditing and that of the Audit Staff. Anthers:
there are practical problems in absorbing DCAA personnel As the IG non-
concurred the proposal in not documented in depth.
DDI Comment
Defir to comment of 1G.
ADP C nt
e there is an advantage to the proposal, there are other basic
considerations that would have to be faced. There should be further
study of the audit function in the contract mechanism.
DIOBSomment
Does not support the recommendation, as the Agency needs a separate.
audit control function.
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DIRECTORATE PROPOSALS
No one agrees. IG also non-concurs, as stated in original forward-
ing menorandum of 4 October 1966.
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IGCOMENT
Our statement on the recommendation is contained in our original
memorandum. NO one concurs with the recommendation.
It is recommended that this proposal not be accepted.
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IG CO
No one disagrees.
The recommendation should be accepted.
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DIRECTOFtATE PROPOSALS
No disagreement.
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Re on 5
Production and logistics supply procurement should continue to
be managed by the Office of Logistics. (Chapter VI, section 1.
DDS Comment
Site Director of Logistics shall continue to be responsible for
management policies, practices, and procedures of the Agency procurement
program.
DDS&T Comment
None.
?mment
Co ur.
DI)? Comment
Concurs that regular production and interagency departmental pro-
curement should remain with Office of Logistics.
IVIEE-512TeRES
Concurs.
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endation 6
Inventory management of technical items should continue to be
the responsibility of the present components. (Chapter VI,
section 1.4).
DDS Comment
None.
DIM Comment
None.
am Comment
Concur.
DDP Comment
Concurs that responsibility for inventory management of technical
items should remain with technical components, custody to be with the
Office of Logistics.
RAW Comment
Concur.
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DIRECTORATE PROPOSALS
No disagreement.
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IG COMMENT
No one opoeee the recommendation.
It is recommended that the recommendation be accepted.
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IG COMMIT
The various specific points are not replied to directly, although
appearing to receive general acceptance, so far as general detail is
concerned. The basic issue here is the application of one basic stand-
ard to all R&D procurement conducted under the authority of the DCI.
Even if R&D procurement is not centralized under the DDS&T (in which
we have agreed with DDS and D&T), and even if direct management of
OSA/OSP procurement remains in those components, there is still advantage
in having one general standard and procedure to be followed. It is noted
that the Office of Logistics now has a Procurement Handbook, setting out
standards and procedures. That will probably be modified to incorporate
the changes envisioned in the DDS plan of action.
It is recommended that the basic recommendation be approved.
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Recommendation 7
Existing R&D procurement policy and procedures should be revised,
supplemented and pUblished to encompass all Agency R&D procure-
ment. (This would involve solicitation of contract, evaluation
of proposals, a procedure for establishing operational require-
ments, evaluation of reviews.) (Chapter VI, section 2.1; Chapter
section 2.7).
DDS Comment.
No direct comment, but subsections a, d, j, k and 1 of paragraph 4
of the DDS memoramtxm propose that the Director of Logistics will con-
tinue to be responsible for management policies, practices and procedures,
and states that be will render advice, assistance and guidance to all
components in the performance of their contract responsibilities. He
will also establish a contract review mechanism and a Central Contract
Registry.
DD SNT Comment
MOW Is attempting, through its recently established Procurement
Management Staff, to place greater emphasis on the listed points. The
Project Monitors Handbook and use of ADP on contract information, repre-
sent significant progress. Concur in the need for a central, repository
of information concerning contractors.
DUE" Comment,
Concurs on all points, except that so much as proposes solicitation
of contracts through the proposed Procurement Office in DDS&T.
DI Comment
)60es not comment.
PAIMomment
No Specific comment, except as generally mentioned on the issue of
centralization of R&D procurement.
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DIRECTORATE PROPOSALS
MS reply is encompassed in its objection to include MO procure.
ment under the "Agency system:" and in its other general responses in
paragraph 4 of its memorandum. DDS&T states that a new procedure is now
being developed.
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Recommendation 8
There should be a complete analysis and revision of the supply
inventory management system, mechanization of the interdepartmental
procurement procedures, and modification of the covert procurement
activities. (The inventory system should consider criticality and
cost-value factors; the present economic reorder point should be
re-examined; the inventories should be
brought into the system.; (Chapter VI section 3; Chapter /V .
section 1.2.(b).
DDS Comment
Vhe tbs accepts responsibility for a contract review mechanism to
ensure that the "delegated contract program" is in accordance with estab-
lished policies, practices and procedures. A program for mechanization
of interdepartmental (miLaniP and FEDSTR1P) has already been initiated.
(See also DOS proposals in paragraph It. of DDS memorandum on consultant
report.)
DDS8T-9omment
None.
DDI Comment
None.
D Comment
Concurs. A complete analysis and revision of the supply management
system should be undertaken, encompassing present procedures for pricing
and invoicing of property distributed by supply systems. While
concurring on recommendations on Interdepartmental and Covert Procure-
ment, DDP felt it should continue to have contact with SACSA JCS S
Assistant for Counterinsurgency and Special Activities)
WPM Comment
No direct comment.
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DIRECTORATE PROPOSALS
Responses appear to accept general thrust of reconnendation, although
specific response is missing on sone specific points.
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IG COMMENT
There is not a specific reply to the various points in the recom-
mendation, although the DDS appears to accept generally the tasks outlined.
It is recommended that the proposal be approved.
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IG COMM
DDS and DDS&T defend the work now being undertaken on their respec-
tive management information systems. In the course of the survey the
consultants reported a series of developments that led to firm impressions
about the shortcomings in both systems, in design and implementation.
Based on the observations of the consultants we came to the conclusion
that the Agency will design its systems only after extensive trial and
error. It was this background that led us to propose that it might be
advantageous to employ outside assistance, with the thought that it
might well save considerable time, and produce a better system in the
end. It was not the absence of expertise in the IG Staff, as indicated
in the DDGAT comment, that led to the recommendation, but an apparent
low level of experience in the personnel in the Agency assigned to this
work at present.
While the consultants have not included in the report their detailed
opinions of why the Agency is either off target in some ADP approaches,
or meeting with limited success in others, they could probably gave a
fairly reasonable summary if requested. It is noted that D/PPB entertains
some of the sane reservations about the DDS effort that we have about
present work in this field, favoring however strengthening expertise of
Agency personnel working on the problems rather than contracting for the
work. On this point we feel that it may not prove as difficult to
contract for the design of the system and help in its initial implementa-
tion as it would be to employ qualified people. Continued operation of
the system would not be as difficult as its creation.
As there is some disagreement on this, and we can only hold general
views in the absence of expertise of our own, it would be useful to
epecifically discuss this question with the consultants (without raising
the question of a contract, but to help understand the problem) to get
their frank views.
It is recommended that Executive Director discuss the AMP problem
with the consultants.
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DIRBOTORNrE PROPOSALS
There is agreement on need for a management information system, but
on a need for outside assistance in getting it started.
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Reco, ndation,9
That the Agency immediately undertake the design and implementa-
tion of an automated Procurement Management Information System.
(Chapter VI, section 4).
DDS Comment
The principal elements of the report have already been taken into
consideration, and the DDS is prepared to accommodate all of them into
the new systems design now under development. The DDS study has been
largely limited to the DDS data base, but the system under development
is for all directorates, and the DDSOIT has indicated that certain
elements of the NRO procurement program can be contained in the system,
with security protective features.
4DS4T Comment
bow= in the requirement for a management information system, and
the DDS&T is now developing one. "However, we do not concur (in the In-
spector General's suggestion 'that) since his own office does not have
expertise in the field of automatic data processing consideration should
be given to employing an outside consultant, and perhaps the author of
the report, to assist (in this)." The Agency has a significant capability
in the ADP field and any talent needed but not now available should be
sought in the form of staff employees.
DDI Comment
doncur. Such a system is very much needed.
DDP Comment
Concurs that the Agency should immediately undertake the design and
implementation of an automated system. Favors a separate system for the
Clandestine Service, but foresees no problem in making it compatible
with other system for the purpose of total central RAD and related pro-
duction information. Agrees that the planned TSD system is not adequate,
and adjustments are being made to meet the criticisms of the report.
P/PPB Comment
The recommendation for design and implementation of an automated
system is valid. Solution of the Support Information Processing System
(SIPS) will not automatically solve the problem. It is believed to be
working primarily on reducing redundacy in the existing system rather
than developing a comprehensive system of reporting and control. There
are three alternatives: (1) bring in an outside firm; (2) continue with
the SIPS group as constituted; (3) strengthen the SIPS group with high-
level information systems design experience. The latter approach is favored.
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Bee mmendation 10
The present system for budgeting, funding and aecounting for the
Agency's stock fund ehould be modified. (Three alternatives are
outlined: a revolving stock fund, an informal stock fund, or
statistical accounts.) (Chapter VI, section 5).
D Comment
Does not concur, feeling that the present system, as recently approved
In the recommendations of an ad hoc committee is the most suitable for
Agency operations. These improvements have corrected the basic deficiencies,
while each of the recommended alternatives poses a special problem; a
revolving stock fund involves Congressional and BoB approval; an informal
stock fund would not revire specific appropriation by Congress, and is
closest to the present system; the establishment of a statistical accounts
system is vague, and 'would dispense with formal financial accounts vbidh
would be a serious step backwards in the Agency's over-all management
posture. The present system is the most flexible one for Agency procure-
ment funding, particularly in the light of budgetary Changes resulting
from economy roves and uncertainty of supplemental appropriations.
DDS&T Comment
No comment.
MI Comment
The present system has been a source of confusion and annoyance for
some time. Favore a system like the revolving stock fund or the informal
stock fund, providing control by components including the prerogative of
reprogramming funds as required.
ppp Comment
Concurs that the present system be replaced with a more simplified and
understandable one for funding property needs for Clandestine Service opera-
tions. Further study should be undertaken to determine vhieh of the systems
recommended is best for the Agency, and the study should incorporate the
views of the DDP operating components.
D/PPB Comment
While not concurring in the recommendation, favoring instead the new
arrangements recently resulting from an internal Agency review, PPB does
favor our stock fund providing components with information on property con-
sumption value by materiel category. PPB also proposes that our budgeting
procedures provide for materiel obsolescence and price increases, and
supports simplification of accounting, and timely reporting through com-
plete mechanization of our property system. These proposals would be the
subject of a study group's efforts.
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DIRECTORATE PROPOSALS
1)1)6 feels that recent modifications in the existing system will
correct the defects noted in the consultant report.
DD1 and DDP agree that existing system needs refurbishing.
D/PPB prefers holding to the newly-modified system, adding to
he factors set out in his comment.
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IGCOMENT
The stock fund system has only recently been modified, to solve
the problems that led to the recommendation of the consultants. That
new approach should be permitted to be tested for a sufficiently long
period to ascertain the adequacy of new arrangements. D/1123% has
recommended that specific additional factors, noted in his comment,
be incorporated into the present system.
It is recommended that the present system not be modified at this
time to meet the recommendation of the consultants, except as suggested
by WPM. It is further recommended that the present system, as recently
modified, be reviewed in depth after it has been tested for a year.
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Recommendation 11
USAF Auditors should be rotated. (Chapter III, section 5.4.2;
Chapter VI, section 6).
DLG, DDI, DDP and D/PPB
No comment.
DDS&T Comment
The consultant report states that the IDEALIST and OXCART have
continued with the sane contractor and contracting teams for a period
of eleven years. This is incorrect. A detailed review is given showing
change in auditors in their work, and the problems in acquiring new
auditors, and in changing them under the practice of DCAA. The "fresh
viewpoint" advocated by the consultants is more than balanced by thorough
knowledge of the contracting firm and the program.
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IG COMMIT
The principle of rotation of audit personnel is a basic one that
should be adhered to as much as possible. The detail furnished by the
DDS&T indicates that the problem is not as critical as the consultants
understood it to be.
While supporting the general principle as stated in the report,
we feel that the position of the DDS&T should be accepted. The Chief,
Audit Staff, agrees in this.
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DIRECTORATE PROPOSALS
Uo alternative is given to the existing situation because of the
nature of the "outside" auditors, the fact that there has been more
change than described in consultant's report, and the difficulties of
employing new personnel, plus the advantages of continuity.
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IG COMMENT
It is understood that the Office of Security, with its new
Industrial Security Division, is conducting a survey of the problems
alluded to in the report. While this is not spelled out in the DDS
reply, my understanding of this new program leads me to feel that no
specific additional instructions at this time are necessary. However,
it is recommended that the program of the new Industrial Security
Division be reviewed within a six months' period.
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DIRECTORATE PROPOSALS
No spec1fic alternative or course of action stated.
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Recommendation 12
Procurement security procedures should be reviewed to identify
and eliminate inconsistencies in security methods followed by
different organizational units within the Agency. Re-examine
practices of procurement cover organizations to assure that they
are consistent with the "real" environment in which they operate.
(Chapter VII section 7).
DDS Comment
The Office of Security will make available sufficient professional
Security officers to maintain the security of all contracting activities.
DDS&T Comment
No comment.
DDI Comment
Concur. Unrealistic procedures and inconsistencies have been caus-
ing problems for contract monitors.
DDP Comment
Defers to the Director of Security.
D/PPB Comment
Defer to the Director of Security.
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Recommendation 13
NPIC should develop a contract for integration of its equip-
ment systems. (Chapter III, Section 4.4.7).
DDSt DDP and D/PPB
No comments.
DMZ Comment
Recommends the systems integration contract. This has proven a
valuable technique for managing programs involving several ea-systems.
It has been particularly useful in OSA and OSP programs.
DDI Comment
The point is well taken. EPIC will continue to develop an integra-
tion system concept internally which will be mission-oriented and will
hopefully accomplish total integration of the major contractual categories.
Contractual assistance will be sought ae required.
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DIRECTORATE PROPOSALS
DDI proposes an internal program in place of an external contract.
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IG COMMENT
NPIC does not appear to wish to have a contract for integration
aystems, preferring to handle this internally. Our awn prior
atione into various VIC programs has led us to believe, now
d by the consultants report, that teChnical expertise in
oo limited for this to be handled successfully internally.
with the WSW comment.
It is recommended that NPIC be instructed to develop a progr
a contract of systems integration.
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Recommendation 14
NPIC should give more attention to the plan for managing its
Long-Range Program. (Chapter III, section 4.4.7
DDS, DDS&T.01(DP and DOM Comments
No comments.
DDI Comment
In accord with general thrust of the recommendation. NPIC is aware
of the need for continuing attention and development of its long-range
R&D program. It has taken a number of steps over the past year to assure
this.
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IG COMMENT
This is a matter for internal management. NPIC recognizes the
problem and plans to pursue a solution to it.
It is recommended that we follow up on this in six months.
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DIRECTORATE PROPOSALS
flPIC will do as recommended.
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